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OTHERS NOTIFICATION OF EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS RAISED FROM THE INITIAL PUBLIC OFFERING

HLT GLOBAL BERHAD

Type Announcement
Subject OTHERS
Description
NOTIFICATION OF EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS RAISED FROM THE INITIAL PUBLIC OFFERING
Reference is made to the utilisation of proceeds raised from the initial public offering (“IPO”) as disclosed in the Company’s prospectus dated 20 December 2016 (the “Prospectus”) that was issued in conjunction with the listing of the Company on the ACE Market of Bursa Malaysia Securities Berhad on 10 January 2017 and circular to shareholders (the “Circular”) in relation to the proposed variation of the utilisation of proceeds raised from HLT’s IPO dated 21 March 2018. The Company has raised a total gross proceeds of RM17.82 million from its IPO (“IPO Proceeds”).

To-date, the Company has yet to fully utilise the IPO proceeds. The Board of Directors of the Company (“Board”) wishes to announce that the Board has resolved to extend the timeframe for the utilisation of proceeds which have been earmarked for the upgrading of eight existing glove-dipping lines and setting up of one new glove-dipping line of a subsidiary, HL Rubber Industries Sdn. Bhd. (“HLRI”) for an additional 24 months (the “Extension of Time”).

A summary of the revised utilisation of IPO Proceeds is set out below:
    
 Purposes   
Proposed Utilisation  RM’000
Proposed  Variation
RM'000
Actual Utilisation RM’000 
Balance RM'000
Estimated Timeframe for Utilisation
RM'000
Extended timeframe for utilisation                  
(a)
Capital Expenditure
9,000
-
-
-
-
-
(b)
R&D Expenditure
1,500
-
-
-
-
-
(c)
Working capital
4,916
7,316
(7,316)
-
-
-
(d)
Estimated listing expenses
2,400
2,400
(2,400)
-
-
-
(e)
Upgrading(1)
-
3,600
-
3,600
(3) 6 months
(3) Additional 24 months
(f)
New line(2)
-
4,500
-
4,500
(4) 12 months
(4) Additional 24 months
    
Total
17,816
17,816
(9,716)
8,100
    
    
 (1) Upgrading – Finance the upgrading of eight (8) of the sixteen (16) existing glove-dipping lines of the newly acquired subsidiary, HLRI. The combined production capacity of the eight (8) existing glove-dipping lines are expected to improve by approximately 30% from the existing 480 million pieces of glove to 624 million pieces of glove per annum.

(2) New line – Finance the setting up of one (1) new glove-dipping line at the existing factory premises of HLRI. The new glove-dipping line will be a single former glove-dipping line, caters for the production of special industrial gloves, with a proposed production output of up to 12 thousand pieces of glove per hour.

(3) Based on the completion date of the diversification and acquisition exercise of 17 May 2018, the timeframe for utilisation will end on 17 November 2018. Pursuant to the Extension of Time, it shall be extended to 17 November 2020.

(4) Based on the completion date of the diversification and acquisition exercise of 17 May 2018, the timeframe for utilisation will end on 17 May 2019. Pursuant to the Extension of Time, it shall be extended to 17 May 2021. 

The Board is of the opinion that the Extension of Time is in the best interest of the Company. The Extension of Time is not subject to any regulatory/shareholders’ approval.

Nonetheless, the Company shall continue to be vigilant and prudent in managing the IPO Proceeds and will continue to disclose the status of the utilisation of the IPO Proceeds in the Company’s quarterly results and annual reports until its full utilisation.

This announcement is dated 16 November 2018.





Announcement Info

Company Name HLT GLOBAL BERHAD
Stock Name HLT
Date Announced 16 Nov 2018
Category General Announcement for PLC
Reference Number GA1-13112018-00044




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